Economic Impacts of U.S. Senate “One Big Beautiful Bill Act” Energy Provisions Summary

The Senate Budget Committee's version of the “One Big Beautiful Bill Act” is projected to significantly reduce U.S. electricity generation capacity by 2035, primarily through the repeal of clean energy tax credits and the introduction of a new excise tax on wind and solar facilities. These policies are forecast to increase wholesale electricity prices by 61 percent by 2035 and raise residential, commercial, and industrial electricity rates by 9 to 16 percent. The resulting decline in energy resource deployment and advanced manufacturing is expected to cost the U.S. $960 billion in GDP over the budget window and lead to job losses peaking at 900,000 in 2032.

• The Senate Budget text is projected to cause a 300 gigawatt decrease in generation capacity by 2035, with wind losing approximately 210 GW and solar losing 110 GW. Grid battery installations would decrease by around 10 GW, while natural gas capacity is expected to increase by 30 GW by 2035.
• Wholesale electricity prices are forecast to rise by 19 percent by 2030 and 61 percent by 2035 under the Senate Budget scenario. Total wholesale electricity costs would increase from $160 billion to $250 billion by 2035, representing a 56 percent increase over current policies. Consequently, electricity rates for residential, commercial, and industrial consumers are expected to increase by 9 to 16 percent.
• The bill's energy provisions are estimated to cost the U.S. $960 billion in GDP over the budget window, with annual GDP losses of $130 billion by 2030 and $100 billion by 2035.
• Employment is expected to decline due to factory closures and construction halts, with job losses of 770,000 by 2030, peaking at 900,000 in 2032, and then decreasing to 650,000 by 2035.

APA

Energy Innovation (n.d.). Economic Impacts of U.S. Senate “One Big Beautiful Bill Act” Energy Provisions Summary. https://energyinnovation.org/wp-content/uploads/One-Big-Beautiful-Bill-Senate-Reconciliation-Budget-Analysis_June-2025.pdf

Chicago

Energy Innovation. Economic Impacts of U.S. Senate “One Big Beautiful Bill Act” Energy Provisions Summary. n.d. https://energyinnovation.org/wp-content/uploads/One-Big-Beautiful-Bill-Senate-Reconciliation-Budget-Analysis_June-2025.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=Economic Impacts of U.S. Senate “One Big Beautiful Bill Act” Energy Provisions Summary |url=https://energyinnovation.org/wp-content/uploads/One-Big-Beautiful-Bill-Senate-Reconciliation-Budget-Analysis_June-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{energyinnovationndeconomic, author = {{Energy Innovation}}, title = {{Economic Impacts of U.S. Senate “One Big Beautiful Bill Act” Energy Provisions Summary}}, institution = {Energy Innovation}, url = {https://energyinnovation.org/wp-content/uploads/One-Big-Beautiful-Bill-Senate-Reconciliation-Budget-Analysis_June-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }